The owner of a Parsippany-based construction firm was charged today in a multi-million-dollar tax scam, including failure to pay his own income taxes.
Andrew Harrer/Bloomberg

NEWARK — The owner of a Parsippany-based construction company that helped build the Palmer Square project in Princeton was charged today in a multi-million-dollar federal tax fraud scheme.

Frank Chimento, Jr., 67, of West Caldwell, was charged with failing to collect federal and state payroll taxes, evading personal income taxes on more than $1.4 million in income, and falsifying reports on union benefit fund contributions, according to U.S. Attorney Paul J. Fishman.

Three employees of Chimento were also arrested on charges including filing false income tax returns, bankruptcy fraud and a mail fraud scheme to defraud New Jersey in connection with unemployment compensation benefits.

Federal prosecutors say the firms worked primarily on the Palmer Square project from 2008 through 2011, but allegedly operated a cash payroll for a significant portion of the wages paid to employees from 2006 through 2011. During that time, prosecutors say no federal payroll taxes were withheld from employee’s wages. Neither were payments for state unemployment, disability or other state withholdings. Chimento also allegedly failed to make payments to union benefit funds on behalf of employees.

Charged with Chimento were Joseph Carsillo, 45, of East Hanover, who was the project superintendent for the Chimento Companies at Palmer Square; Frank Chimento III, 45, of Verona, who worked for the Chimento Companies for more than 10 years; and Carl J. Corso, 58, of Hamilton Township, another Chimento employee.

Attorneys for the men could not be immediately reached for comment. All four are scheduled to make their initial appearances later today before U.S. Magistrate Judge James B. Clark III in Newark federal court.